They're banking on the penalties being lower than what they'd lose if they didn't stop it.
They're probably right
GameStop Stock surges due to meme traders
- Thread starter TheMysteriousGX
- Start date
They're probably right
Much of the stock market fundamentally works on the principle that fools can be easily parted with their money.
The stock market goes up (or down) a certain amount any unit time. For some investors to do better than the market average means other investors necessarily do less than the market average. Nearly all big funds will equal or outperform the market in the long term - so who underperforms? And countless studies show it's small investors. The Robinhood app is thus ironically named, because what overall it's mostly achieving is to allow a lot more small fish into the sea where they can be eaten by the sharks: faster, smarter, better informed and connected professionals.
If you think about all those major scandals where rogue traders lost their employers staggering sums of money, they have all the hallmarks of high stakes gambling and gambling addition. As the stock market has more in common with gambling than it does with skill, apps facilitating stock market trading should probably also be regulated accordingly.
Lol I just made a comment about that like 10 minutes ago. I dunno what this newfound superpower is but I like it.
This is an area I don't know much about, but does this private company need a licence to conduct it's business, and does that licence require that certain terms be met?
We're conditioned to believe that it is. I can't be sure, but I think that at the very least hedge funds are useless to society and they exist only to enrich themselves by turning the stock market into a glorified casino that can be manipulated at will. It used to be that only they knew how to manipulate it, but the turntables...
A lot of pensions are funded by hedge fund investing because interest rates are too low for going through the banks to work.
Oh I'm sorry do the posters here who were all "Private companies can do what they like they're not obliged to provide services to people" suddenly no longer exist?
Cause pretty sure over the past few weeks we've had a number of people saying lines like that. I seem to remember you being very supportive of said position too.
The stock market answers the fundamental economic question "for whom?"
Well, part of it. The part related to who gets the power to rule over society.
Welp, all the stuff RobinHood has done was laid out in their EULA and probably isn't illegal, so yeah, private companies will continue to do what they like. You seem to think that an observation of how things are constitutes endorsement.
Countries that rely on hedge funds to fun pensions are doing something wrong.
Man, Robin Hood seems to be doing everything it can to get every user on it to quit them...
You're going to have to show me where this is about 'providing services to the general people.'
Finance isn't for people. It's for the rich
Isn't this story about them stopping the general small time users from participating in this affair on behalf of the rich though? You can't stop someone who isn't already being serviced, so they defacto are for all people.
Okay so I've seen this all over the place the last few days, I need someone to explain it to me. I don't understand the stock market at all, but from what I can gather a bunch of dudes on a subreddit decided to buy Gamestop stock...and that's a problem for like a hedge fund company that bet Gamestop stock wouldn't go up?
Pretty much. It's kind of financial trolling.
It's funny, but you have to bear in mind eventually the stock in GameStop will crash and a lot of these Reddit guys will lose money. I hope they're ready for that.
The other thing is that the hedge funds will win in the end. These funds are huge, and a brief embarrassment on a short that is a tiny fraction of their business won't really hurt them much. And bear in mind other major financial traders will have made money buying into the craze, and they'll cash out before the crash. And they'll all learn from this too: they'll learn to keep an eye on Reddit, Facebook, wherever to spot these trends in case anyone every tries it again. Or, because they will be exactly the sort of petty, get-one-over-the-other-guy pricks you'd assume, I wouldn't be surprised if it will become of their armoury to screw each other over.